Employment LawThe Legal Framework for Apprenticeships and Internships in India

INTRODUCTION

Young students and professionals can gain valuable hands-on experience in a particular industry through internships and apprenticeships, which serves an important purpose in building their careers. However, the legal aspects of these roles in India are often misunderstood and neglected.

With India’s ever-growing working population and the need for guided professional training, it is necessary to recognize the interns and apprentice’s rights, duties, and protections under the statutory provisions of India.

LEGAL FRAMEWORK AND RIGHTS OF APPRENTICES

The Apprentices Act, 1961 (the Act) governs apprenticeship training in India, ensuring skill development across industries through a structured approach. The Act encompasses all industries whether private or public, mandating that qualifying persons with certain educational and medical conditions can be registered as apprentices. In addition, the Act reserves training quotas for SC, ST, and OBC candidates.

Apprenticeship training varies based on the trade and category of the apprentice, with durations prescribed under Government rules. Employers are obliged to provide both the practical and theoretical education ensuring skill enhancement is relevant to the industry. The conditions under which the apprentice is to be trained by the employer are stipulated in a contract with the employer. Where an employer is unable to continue training, provisions are made for the transfer of the contract of apprenticeship to another employer.

Employers are required to pay stipend that is revised from time to time by the Government, ensuring financial security for apprentices. Although apprentices are not considered employees, they enjoy some legal protection in health, safety, and welfare especially in factories, mines, and commercial establishments. Their basic rights include reasonable working hours, leaves, and good working conditions.

Apprentices and employer’s conflicts can be settled through Apprenticeship Advisers and the Apprenticeship Council. Upon successfully completing the required training and qualifying examinations, an apprentice is awarded a certificate of proficiency, which helps in securing employment. Nevertheless, there is no guarantee of employment after training and is subject to the employer’s decision.

The Act makes certain that apprentices are trained appropriately while ensuring their rights are not violated. This legislation plays a pivotal role in skill development in India’s changing workforce which makes it suitable for the growing economy.

LEGAL FRAMEWORK AND RIGHTS OF INTERNS

Unlike apprenticeships, internships are not governed by a single statute and neither are they formally recognized under any law or policies. Internships can be categorized into academic internships (mandated by universities as part of coursework), industrial internships (undertaken voluntarily for skill enhancement), legal internships (often associated with law firms and courts) and other types of internships.

Interns are generally not considered employees under the Industrial Disputes Act, 1947, meaning they may not be entitled to benefits such as gratuity or provident fund. Unlike apprentices, there is no legal requirement for companies to pay interns a stipend, and whether a stipend is provided depends entirely on the employer’s discretion.

However, certain labor protections may still apply. For instance:

• Sexual Harassment Protection: Interns are covered under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Section 2(f) of the Act defines an “employee” to include a trainee, apprentice, or any other individual working on a voluntary basis; making it clear that interns have the right to protection from workplace harassment.
• Termination and Leave: Interns can have formal employment contracts, but many times there is no formal employment contract, which leaves the termination policies and leave provisions at the employer’s discretion.

INTERNATIONAL PERSPECTIVE ON INTERNSHIPS

Several countries with economic structures similar to India have established clear legal frameworks for internships. For example:

• China: Regulates internships under general labor laws, but compensation is not universally mandated. Some regions encourage stipends, while unpaid internships remain prevalent in certain sectors.
• Brazil: The Internship Law (Lei do Estágio) ensures that interns receive stipends and are protected from excessive work hours. Educational institutions play an active role in overseeing internships and Interns are entitled to vacation breaks if the internship lasts over a year.
• South Africa: Regulates internships under general labor laws, but unpaid internships are permitted if educational. Government programs mandate stipends, while private sector norms vary.
• Indonesia: Lacks a dedicated internship law, and stipends are not legally required. While some companies offer compensation, unpaid internships remain widespread.

India can draw insights from these nations to create a standardized framework that balances learning opportunities with legal protections for interns.

CHALLENGES AND NEED FOR REFORM

In the absence of comprehensive legislation, many issues arise pertaining to the execution of apprenticeship and internship programs. There is a serious lack of knowledge on legal entitlements on the part of both the employers and the students.

To address this issue, it is crucial to implement legal agreements that clearly outline the rights and responsibilities of interns and trainees. These agreements should ensure fair stipends, define work expectations, and provide transparency regarding potential employment opportunities. Strengthening legal protections will help prevent exploitation and create a more equitable work environment.

To address these challenges, India could adopt the following reforms:

• Enact a Comprehensive Internship Law: A dedicated statute governing internships could establish minimum standards for working hours, stipends, and workplace protections.
• Mandatory Stipend for Long-Term Internships: A legal requirement for stipends in internships exceeding a certain duration (e.g., three months) could prevent exploitation.
• Clear Guidelines on Work Conditions: Establishing guidelines similar to apprenticeships under the Apprentices Act, 1961, could ensure fair treatment.
• Regulated Work Hours: Limiting work hours for interns can prevent excessive workloads and ensure a better learning experience.
• Increased Monitoring and Compliance: The Government can set up a monitoring mechanism to ensure adherence to best practices by companies offering internships.
• Address Socioeconomic Barriers: Implementing financial aid or stipend mandates for economically disadvantaged students could create equal opportunities for all interns.

AMLEGALS REMARKS

While the Apprentices Act, 1961 provides a robust framework for apprentices, the legal landscape for internships remains fragmented. There is a need for a comprehensive law defining the rights, obligations, and protections for interns to prevent exploitation and ensure fair treatment.

Strengthening the legal framework can lead to better skill development opportunities for interns, trainees and apprentices, and a more structured transition from education to employment.

– Team AMLEGALS assisted by Mr. Mehul Agarwal (Intern)

For any queries or feedback, feel free to reach out to rohit.lalwani@amlegals.com or mridusha.guha@amlegals.com